1

A

PROJECT PROFILE

ON

2010-2011

Prepared By : MET. DIVISION

MSME-DEVELOPMENT INSTITUTE

34, INDUSTRIAL ESTATE, NUNHARI

AGRA- 282006

SOLDERING WIRE (NEW)

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A PROJECT PROFILE ON SOLDERING WIRE

PRODUCT CODE : N A

QUALITY STANDARD : The bureau of Indian standard has laid

down Following specification

IS 1921/61

PRODUCTION CAPACITY :

QUANTITY : 30 M.T.

VALUE : Rs. 90, 00,000

MONTH & YEAR OF PREPARATION : DEC, 2010

PREPARED BY : MET. DIVISION

MSME D.I

34, INDUSTRIAL ESTATE,

NUNHAI AGRA 282006

Introduction:-

Soldering wire is used in Electrical, Electronics and telephone industries for

soldering ratio, transistor, TV. Circuit and computer circuits too as well as

electrical connection. The industry can be taken up small scale basis with good

profitability.

MARKET POTENTIAL:-

The product is having very good demand in indigenous market as well as in

foreign countries. There is a great Export potential for this item in Middle East

countries. Its price varies depending upon the ratio of tin, lead and other alloy.

III. Basis & presumption:-

1. The project file has been prepared on the basis of single shift of 8-hrs. a day and 25- working days in a month at 75% efficiency.

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2. It is presumed that Ist year, the capacity utilization will be 70% followed by 85% in the next year and 100% in the subsequent year.

3. The rates quoted in respect of salaries and wages for skilled worker and others are on the basis of minimum rates in the state of U.P.

4. Interest rate for the fixed and working capital has been @ 18% on an average whether financed by the bankers or financial institutional.

5. The margin money required is minimum (30% of the total capital investment.)

6. The rental value for the accommodation of office, workshop and other covered area has been taken @20/-per sq. meter.

7. The rate quoted in of machinery, equipments and raw material are those

prevailing at the time of preparation of the project profile and are likely to vary

from place to place and suppliers to suppliers. When a tailor made project profile is

prepared, necessary changes are to be made.

1. The pay back period may be 5-years after the initial gestation period. 2. The gestation period in implementation of the project may to be the tune of 6to 9

months which includes making all arrangements, completion of all formalities,

market surveys and tie-ups etc. once all the arrangements are made and

quality/standards achieved the 100% project capacity may be achieved at the

end of three years. However, a detailed PERT/CPM/chart with implantation

period has been given in the report.

IV. Implementation schedules:-

The implementation of the project includes various jobs/exercise such as

procurement of technical know how, transfer of technology, market surveys and tie-

ups, preparation of project report, selection of site, registration, financing of project,

procurement of machinery and raw material etc. recruitment of staff,

erection/commissioning of machines, trial production and commercial productions

etc. In order to efficiently and successfully implement the project in the shortest

period the slack period is curtailed to minimum has been illustrated below,

According to which a minimum period of 227 days is involved in family starting the

project on commercial basis. By following this process a time period of 82 days can

e solved.

Details of Activities

C.P.M.

Activity Days Activity Days Particular of activity

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1-2 15 1-2 15 procurement of tech.know/

Transfer of technology.

3-4 15 3-4 15 Market survey, tie up and

Obtaining quotations.

4-5 7 2-3 7 selection of site.

5-6 70 4-5 7 preparation of project

report

6-7 45 5-6 70 Registration of financing

7-10 30 6-7 45 place of orders for

machinery and Receipt

of machines.

10-11 30 6-8 30 Recruitment of staff and

training

11-12 15 6-9 30 Additional/Alteration in

rental Premises

8-10 15 Procurements of raw

material/Bought out

Components

7-10 30 Erection, Electrification

and commissioning

10-11 30 Trial productions

11-12 15 Commercial productions

227 days 309 days

V. Technical Aspect.

Manufacturing Process:

The process consists of following operations:-

1. Melting as per requirements. 2. Pouring in metal Moulds. 3. Filling the flax. 4. Bar Rolling. 5. Wire Rolling. 6. Coiling 7. Packaging.

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The recommendation percentage of thin, lead, antimony is to be melted first and then

poured in Metal Moulds keeping the provision of central hole longitudinally for

subsequent pouring of rosin mixture and then it is allowed for cooling. The bars are rolled

plant and further it is reduced to thinner gauges in wire rolling machine according to the

requirement. Finally, the material is packed and kept ready for marketing. The

solder Wires of different compositions of thin and lead mentioned below mat be

manufactured with the help of some machinery and equipments. However the sale

price will vary and the rates will be lowered with presences of more percentage of

loads.

A B C D E F G

Tin 60 50 40 30 20 10 5

Lead 40 50 60 70 80 90 9

Production (Target & value):-

QUANTITY : 30 M.T.

VALUE : Rs.90, 00,000/-

Quality Control & Standards:-

Soldering Wire will be produced as per IS - 1921/1961

1. Power Requirement: - 10 K.W.

Water Requirement: - - K.L./monthly

2. Energy Conservation:-

The following steps may be taken for the conservation of

energy.

1. Machinery & Equipments parts, which are resolving and reciprocating should be properly, lubricated from time to time

with suitable lubricant oil.

2. Lay out of the unit should be in such a way in that no back tracking of material is there.

3. All electric switches may be kept off, when no required.

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4. The entire transmission belt will be tightened before starting the

work is wherever applicable.

5. Fluorescent with electronic chokes may be used for energy

saving. Further recently developed compact fluorescent tubes

called (CFT) of 10, 15 watts Philips/Glaux made may be used for

energy saving and decoration. These self ballasted fluorescent

lamps are high efficiency replacements for ordinary bulbs. For

same light output, CFLEBs consume about one-fifth the power

consumed by ordinary bulbs. thereby saving a lot of energy. The

saving get further multiplied when CLEBs are used in air

conditioned areas, since the saving of energy by using CLEBs

also corresponds to less heat dissipation reducing load on air

conditioners. The life of CLEBs is about 8000/10000 hours i.e.

about 10 times that of ordinary bulb.

The typical payback period in terms of savings of energy

bills and cost of ordinary lamps is about 6 months

operation. Unlike ordinary bulbs, these CFLEBs provide choice of three colors designated A,B,&C, to suite

individual requirements.

Electronic ballast, with protection against high voltage spikes,

along with high quality

CFLs make these composite CFLEBs (or self ballasted CFLs ) slim,

lightweight, efficient and reliable units.

6. As far as possible solar Energy and day light will be used keeping all the other lights off.

7. As far as possible inductive load of motor will be reduced and

high power factor will be used with the aid of capacitors of

appropriate sizes.

7. Population control:-

1. This industry involves population to some extent for which state

Population control Board has to be approached.

2. Minimum height of shed will be maintained with exhaust fans

should be installed for removing decongestion proper ventilation,

removal of cooks fumes etc.

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VI. Financial Aspects:-

Land and building (rented)

On rent @ Rs. 20/- sq. meter

Covered Area 300 Sq. meter

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2. Machinery and equipments:-

S.No. Description HP/KW

IND/Imp

Qty. Value(Rs)

1. (a) Production unit

Name of machine

with

specification

Coke fire pit furnace

with 1 hp motor and

other accessories

1 HP

2

20,000,00

2 Bar Rolling plants

for rolling bar/rod

with 2 HP motor

2 HP 2 32,000,00

3 Rolling Machine for

rolling the bar to

inner section

2 16,000,00

4 Wire rolling machine

with 1 HP motor

1 HP 4 20,000,00

5 Wire cutting

Machine with 1 HP

motor

1 HP 2 10,000,00

6 Wire Winding

Machine with 1 HP

motor

1 HP 2 8,000,00

7 Chemical Testing

Equipments

LS 15,000,00

8 Weight balances 2 7,000,00

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(b) Testing Equipments such as:

i) Measuring Instruments

(c) Pollution Control equipment, if required:

(d) Energy Conservation Facilities/ Equipments, if used:

Furnace should have resistant fire bricks to

Avoid wastage of heat energy

CFT Tubes

Florescent Tubes with electronic chokes

(E) Electrification & installation charges @ 10% 12,800.00

(f) Cost of jigs/fixtures/dies etc. 10,000.00

(g) Cost of office equipments etc. 15,000.00

(h) Cost of Transformer & Electrification

(If load more than 15 K.W.)

Total Cost of machinery & Equipments

A+b+c+d+f+g+h

1,65,800.00 Total Fixed Capital (1+2+3) 1,65,000.00

VII. Working Capital (per month)

Staff and Labour (per month):-

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(1.) personnel

S.No. Description No. Salary @ Total value

(Rs.)

(a) Administrative & supervisor

i) Manager ii) Supervisor/Foreman iii) Store Keeper iv) Clerk v) Chowkidar

1

1

1

1

1

9000

7000

4000

2000

2000

9000.00

(b) Technical skilled & unskilled

Skilled worker

Helper

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9

1500

1000

12000.00

9000.00

Perquisites@15% 6750.00 Total 51,750.00 Say 52000.00

(2) Raw Material (per month):-

S.No Description with

specification

Qty. Rate Value (Rs.)

1 Tin (30%) imported 1250kg. 377/- per kg 4,71,250.00

2 Lead (49.5%) ind. 1250 kg. 40/- per kg 50,000.00

3 Antinomy (.5%)

imported

75 kg. 280/- per kg 21,000.00

4 Rosin, glycerin Ls 10,000.00

5 Head Coke 4 Ton 6000/ton 24,000.00

Total 5,76,250.00

Say 5,76,000.00

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3) Utility (per month):- Electricity 5000.00

Water 500.00

5500.00

(4) Other Expenditure (per month) 1 Rent 6,000.00

2 Postage 1500.00

3 Advertisement 1000.00

4 Packing 1000.00

5 Sales expenses 1000.00

Total 13500.00

II. Total Recurring Expenses (per month) 1) Salary & wages 52,000.00

2) Raw Material 5, 76,000.00

3) Utilities 5,500.00

4) Other contingent Expenses 13,500.00

Total 6, 47,000.00

IX. Working Capital for three month:-

6, 47,000 X 3 = 19, 41,000.00

X. Total Capital Investment:-

Fixed capital 1, 65,800.00

Working capital for 3 months:- 19,41,000.00

Total 21, 06,800.00

Say 21, 07,000.00

XI. MACHINERY UTILIZATION:-

It is used that during first year machine utilization will be 70% and

during second year 85% and 100% in subsequent years.

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XII. Additional Information if any; Nil

XIII. FINANCIAL ANALYSIS

1. Cost of production (per amount):- (a) Salary & Wages 52000 x 12 624000.00

(b) Rent 72000.00

(c) Raw material 576000 x 12 6912000.00

(d) Utility 5500 x 12 66000.00

(e) Other Expreses 135000 x 12 162000.00

(f) Depreciation on M/c. @ 10% 14500.00

(g) Depreciation on Fixed Cost @ 20% 4000.00

(h) Interest on Capital Investment @ 15 % 291150.00

Total 8145650.00

XIV. Turn Over per annum:-

S.No. Description Qty. Rate Value(Rs.)

1. Soldering

wire

30,000 kg 300/- per kg 90,00,000.00

Total 90,00,000.00

XV. Net profit per annum before Income Tax:-

90,00,000-81,46,000= 8,54,000.00

XVI. Net Profit Ratio:-

Net profit x 100 8,54,000 x 100 = 9.48%

Turn over 21,07,000

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XVI. Ratio of Return:-

Net profit x 100

Total investment

8, 54,000 x 100

2107000 = 40.5% XIV. BREAK EVEN ANALYSIS:-

(1) Fixed Cost (per annum)

(a) Total Depreciation (on m/c. & equipments, dyies, tools,

furniture): 18500.00

(b) Rent: 72,000.00

(c) Interest on borrowing (Total Investment) 2,91,150.00

(d) 40% of salary & wages 2,49,600.00

(e) 40% of other contingent expenses: 36,000.00

(Excluding rent & insurance)

Total 6,67,250.00 XX. Break even point = fixed cost x 100

Fixed cost + profit

= 6,67,250, X 100 43.8%

667250+854000

XXI. LIST OF MACHINERY & REAW MATERIAL SUPPLIERS

1. M/s. Winner Electrical, B- 104/2, Naraina Indl. Area, New Delhi. 2. M/s. Desman Engineering Co. B-99, Mayapuri Indl. Area New Delhi. 3. M/s. Pioneer Equipments 432, padra Road, Baroda. 4. M/s. Mineral & Metal Trading Corpn Of India, Express Building,

New Delhi.

5. M/s. Global Linkers (p) Ltd. 3492 Ajmeri Gate, kamla market, New

Delhi.

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